Front Yard Residential Corporation (NYSE:RESI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 08:30 am ET


Front Yard Residential Corporation (NYSE:RESI) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Front Yard Residential Corporation Second Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Ms. Alysia Cherry, Head of Investor Relations. Please go ahead.

Alysia Cherry

Thank you, Jerome. Good morning, and thank you for joining us for Front Yard's Second Quarter 2020 Earnings Conference Call. Joining me on today's call is George Ellison, Chief Executive Officer; Miles Adams, Senior Vice President of Property Operations; and Robin Lowe, Chief Financial Officer.

I'd like to guide everyone to the earnings slide presentation available through the Investors section of our website at These slides were created to accompany our remarks and provide additional information investors may find useful.

I'd also like to inform you that our comments today may contain forward-looking statements relating to the future performance of our business, the Company's financial results, capital allocation and other non-historical information. These statements may involve risks and uncertainties that could cause the Company's actual results to differ materially from those discussed in the forward-looking statements, particularly in light of the ongoing COVID-19 pandemic.

We describe some of these risks and potential differences in our earnings release as well as the Company's filings with the SEC, including the Form 10-Q we filed today. We may also discuss certain non-GAAP financial measures. You can find additional information on these measures, including a reconciliation to GAAP within our earnings release and earnings presentation located in the Investors section of our website.

I'll now turn the call over to George Ellison, Chief Executive Officer. George?

George G. Ellison

Thanks, Alysia. Good morning, everyone. We at Front Yard Residential wish all of you the best in these trying days. And as the country is in the process of reopening, we remain focused on the safety of the families in our homes as well as the safety of our teammates around the world. These are incredibly challenging times. But nonetheless, our teams have remained determined and committed to the task at hand, serving our families and producing results for our shareholders.

With that said, I'm happy to report that the second quarter of 2020, was very strong. In fact, our performance improved significantly even compared to our record first quarter. We think there are clear macro trends supporting our business and the pandemic has only accelerated them. We can see some of that positive impacts in our Q2 numbers. Additionally, Miles and his team continue to tighten up operations. And as good as things are, we believe there's still room for improvement.

So let's get into the numbers. If you look at Page 4, you'll see a lot of information, like rental revenue of $55 million; stabilized rental NOI, $33 million; stabilized rental core NOI margin, 61.5%; core FFO $0.18 per share; AFFO $0.09 per share; stabilized rent growth, 4.1%; stabilized lease percentage, 98.3%; stabilized rental turnover, 7%; truly a very strong quarter.

I'll leave the details